What to consider before buying land in Bali

Deemed one of South East Asia’s hottest island property investments, Bali draws a steady return-on-investment, as it does beach-goers.

Like many exotic locations around the world, there are numerous points to consider before buying land in Bali or even before committing to a long term lease as an investment or retirement villa. Specific regulations, bureaucracy and local lying agents ready to make a quick buck, make investing in Bali a confusing undertaking for a foreigner.

The laws governing land ownership are very clear – no foreigner is allowed to own land. There is however a safe and secure way for a foreign investment company to own land – Hak Guna Bangunan (HGB) if we’re talking about business purposes

There are too many ill-informed con-men offering  deceiving illusions to those seeking a better life in Bali, their arrangements often result in shattered dreams and loss of life savings. Before committing to a client’s land purchase, it’s best to have a legal team conduct a due diligence survey to ensure that your property in Bali is a worthwhile investment.
Not all due diligence surveys are conducted in the same manner, only a legal consultant that is familiar with property, tax, visa and corporate laws can ensure that your investment is legitimate, as your business will be involved in all four aspects.
Hiring a notary in Indonesia instead is not fool proof either, as notary offices often only understand laws pertaining to property and corporate set-ups, whereas there is a comprehensive scope to cover when it comes to Indonesian laws.

There are five essential points before buying land in Bali:

1. Are all the necessary documents – such as land deeds and certificates in order?
2. Is the seller the rightful owner?
3. Are there any disputes or mortgages on the property?
4. Have the necessary taxes been filed and paid?
5. Are there any zoning laws that would interfere with your investment plans?

New regulations and laws come into effect often, therefore one should have an ear on the ground whilst considering the list of questions above.